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Argan – AGX – Financial results for the three and nine months

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Argan, Inc. (NYSE AMEX: AGX) announced financial results for the three and nine months ended October 31, 2011.

For the quarter ended October 31, 2011, net revenues were $43.6 million compared to $45.2 million during the quarter ended October 31, 2010.

Gemma Power Systems (Gemma) contributed $41.3 million or 95% of net revenues from continuing operations in the third quarter of fiscal 2012, compared to $42.7 million or 94% of net revenues from continuing operations in the third quarter of fiscal 2011. The reduction in comparative net revenues was due primarily to the completion of the construction of a large gas-fired power plant in Northern California in the first quarter of the current year and the substantial completion of a gas-fired peaking facility in Connecticut in the second quarter. Since May 2011, Gemma has received notices to proceed on a new 800 MW gas-fired project near Desert Hot Springs, California, a 200 MW wind project in Illinois, a 49.9 MW biomass plant in Texas and a solar project in Massachusetts.


For the nine months ended October 31, 2011, net revenues were $85.9 million compared to $150.8 million during the nine months ended October 31, 2010. Gemma contributed $79.7 million or 93% of net revenues from continuing operations in the first nine months of fiscal 2012 compared to $144.5 million or 96% of net revenues from continuing operations in the first nine months of fiscal 2011. The Company reported EBITDA (Earnings before interest, taxes, depreciation and amortization) from continuing operations of $4.0 million for the quarter ended October 31, 2011 compared to $4.5 million for the same prior year period. Gemma, for its segment, recorded $4.7 million in EBITDA for the third quarter of fiscal 2012 compared to $5.1 million in the third quarter of fiscal 2011.

AGX reported EBITDA from continuing operations of $7.8 million for the nine months ended October 31, 2011 compared to $15.0 million for the same prior year period. Gemma, for its segment, recorded $10.1 million in EBITDA for the first nine months of fiscal 2012 compared to $17.9 million for the first nine months of fiscal 2011.

In the third quarter of fiscal 2012, the Company reported income from continuing operations before income taxes of $3.8 million compared to income from continuing operations before income taxes of $4.3 million in the third quarter of 2011.

About AGX, Inc.

AGX’s primary business is designing and building energy plants through its Gemma Power Systems subsidiary. These energy plants include traditional gas as well as alternative energy including biodiesel, ethanol, and renewable energy sources such as wind power. Argan also owns Southern Maryland Cable, Inc.

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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